Core Viewpoint - Citigroup has issued a report indicating that the significant acceleration in fixed-price gold products will positively impact the profitability of Luk Fook Holdings (00590), expecting trends such as accelerated same-store sales growth and improved profit margins. The stock is rated as "Buy" with a target price of HKD 35.2 [1] Group 1: Sales Performance - For the third fiscal quarter ending December, Luk Fook reported strong same-store sales growth, with a 31% increase in mainland franchise stores and a 16% increase in Hong Kong, Macau, and overseas markets, aligning with Citigroup's expectations [1] - Although the same-store sales growth for mainland self-operated stores was only 7%, which fell short of expectations, it accounts for only about 10% of the group's revenue, thus having a limited impact [1] - The same-store sales growth performance from early this month to the 7th exceeded expectations, indicating a positive outlook for the upcoming Lunar New Year sales season [1] Group 2: Market Conditions and Strategy - Management noted that despite gold prices reaching a new high in December, consumers have gradually adapted to the high gold price environment, resulting in minimal impact on sales [1] - Following the implementation of a new gold value-added tax policy in mainland China, the price gap between products in Hong Kong, Macau, and mainland China has widened, benefiting the Hong Kong and Macau markets, along with the appreciation of the Renminbi [1] - The management remains optimistic about the significant growth potential in overseas markets and plans to allocate more resources for expansion, maintaining the target of adding approximately 20 new stores by the fiscal year 2026 [1]
花旗：料六福集团(00590)春节销售前景良好 评级“买入”